Politics | SUNBIZ

A-G Clarifies On Govt Guarantee On Fiji Airways Borrowings

The motion moved that Government guarantee the Fiji Airways borrowings consisting of a mix domestic borrowings up to FJ$191.1 million and offshore borrowings up to US$117.1 million with a total limit of approximately FJ$455 million valid for a period of three years, effective from 30 May 2020.
26 May 2020 11:38
A-G Clarifies On Govt Guarantee On Fiji Airways Borrowings
Attorney General and Minister for Economy Aiyaz Saiyed-Khaiyum outside Parliament May 25, 2020. Photo: Ronald Kumar.

Parliament yesterday unanimously approved a motion by the Attorney-General Aiyaz Sayed-Khaiyum for the Government to guarantee Fiji Airways borrowings for a period of three years effective from May 30, 2020.

According to Mr Sayed-Khaiyum, the motion was moved in a bid to preserve and safeguard our national air carrier, Fiji Airways amid the COVID crisis in Fiji.

The motion moved that Government guarantee the Fiji Airways borrowings consisting of a mix domestic borrowings up to FJ$191.1 million and offshore borrowings up to US$117.1 million with a total limit of approximately FJ$455 million valid for a period of three years, effective from 30 May 2020.

The motion had also included that Fiji Airways be exempted from paying a guarantee fee.

Mr Sayed-Khaiyum said: “The guarantee we are seeking is for a number of sources of funding that will be ascertained.”

Meanwhile, Fiji Airports Limited has extended the 100 per cent rental discount for its tenants at the airports for another two months.

Mr Sayed-Khaiyum last night informed Parliament of this development.

Fiji Airports Limited had earlier given rental discounts but given that flights have not resumed, this has been extended.

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